TIDMCPP
RNS Number : 3701A
CPPGroup Plc
22 January 2024
CPPGroup plc
(the "Group" or the "Company")
Trading Update for Financial Year 2023
Ahead of its full-year results, CPP Group (AIM: CPP), a provider
of real-time, digitally delivered assistance products which reduce
disruptions to everyday life for millions of people across the
world is pleased to provide a trading update for the year ended 31
December 2023.
Trading from our Core business (1) (Blink Parametric ("Blink"),
CPP India, CPP Turkey and Globiva) was in line with expectations.
Our Legacy business (2) , despite the commencement of the wind-down
and closure programme, recorded better renewals and lower costs
than forecast, consequently EBITDA from continuing operations,
being Core plus Legacy operations, is expected to be materially
ahead of market estimates (3) at GBP4.8 million for the year (2022:
GBP6.9 million).
As announced in the Group's 2023 Interim Results, the Legacy
closure activity will lead to substantial exceptional provisions in
the Group's Full Year results.
Key Highlights 2023
1. Revenue from continuing operations circa GBP193 million 14%
ahead of prior year (21% on a constant currency basis).
2. EBITDA from continuing operations circa GBP4.8 million (2022: GBP6.9 million).
3. Strong revenue growth recorded in our key Indian and Turkish markets.
4. Blink, the Group's business providing parametric insurance
products particularly for the global travel sector, continues to
progress well, and has this year secured a number of new clients in
the UK, European and North American markets. Additionally, Blink
has achieved a 100% renewal rate of its existing customer base
which provides a further proof point on the value Blink helps to
create for its partners.
5. Closure of Legacy operations proceeding to plan with renewals
and costs better than forecast.
6. Divestment over a three-year period of the Group's 51%
shareholding in Globiva Services Private Ltd for circa GBP5.1
million.
7. New IT Platform for the Indian business delivered in August 2023.
From a trading perspective the Group's Core business, despite
some currency headwinds, delivered its revenue and EBITDA targets
for the year. The Group's Legacy business performed better than
forecast, as renewals remained robust during the wind-down and
closure process.
Operationally, the Change Management Programme, which at its
conclusion will see the Group exit from its Legacy businesses and
focus on growing its Blink, Indian and Turkish operations, is
broadly proceeding to plan with only the second and smaller phase
of the new IT platform for the Indian business being delayed until
the Spring of 2024.
The Group's results for the year ended 31 December 2023 are due
to be published on 26 March 2024.
Simon Pyper, CEO of CPP Group, commented:
"We have achieved a great deal in 2023, delivering a good set of
trading results, and at the same time, implementing the Change
Management Programme, which is well underway, and progressing to
plan. We remain committed to our strategy of focusing on our core
businesses and exiting from those businesses and activities, such
as Globiva, which are considered to be non-core. Although there is
much to be pleased about and we look forward with confidence to
2024, there remains much to do as we build a business which
delivers long-term value for shareholders."
(1) Core business comprises Blink, CPP India, CPP Turkey, and
Globiva. In addition to these business units Core EBITDA includes
central costs.
(2) Legacy business primarily comprises the UK and European
renewal books of business, which are principally Card Protection
and Identity Protection policies.
(3) Market estimates for revenue at GBP177.0 million and EBITDA
at GBP4.2 million for the 2023 financial year.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as amended by The
Market Abuse (Amendment) (EU Exit) Regulations 2019. Upon the
publication of this announcement via the Regulatory Information
Service, this inside information is now considered to be in the
public domain.
Enquiries :
CPP Group plc
Simon Pyper Chief Executive Tel: +44 (0)77 6437 8580
Officer
David Bowling, Chief Financial
Officer
Liberum Capital Limited
(Nominated Adviser and Sole Tel: +44 (0)20 3100 2000
Broker)
Richard Lindley
Lauren Kettle
About CPP Group:
CPP Group is a technology-driven assistance company that creates
embedded and ancillary real-time assistance products and resolution
services that reduce disruption to everyday life for millions of
people across the world, at the time and place they are needed. CPP
Group is listed on AIM, operated by the London Stock Exchange.
For more information on CPP visit
https://corporate.cppgroup.com/
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END
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